How to Get a HR Consultancy License in Dubai, UAE

Dubai, which is a melting pot of cultures, is a hub where you will find professionals from diverse fields thriving. It is not just a hub of cultures but also one that nourishes and supports millions of skilled labourers. Every year, thousands of people relocate here in search of better opportunities.

Dubai, which is a hub for businesses and companies, offers huge opportunities for them. These businesses are looking for individuals who can work with them. As more and more businesses grow, the demand for human resource consultancy also tends to increase. That is where a new opportunity for starting an HR consultancy in Dubai emerges. The HR consultancy license in Dubai has become one of the most sought-after business licenses, and more such businesses are being established in the city.

If you have an eye for talent, or if you are someone who loves managing people, helping them grow, and assisting businesses in filling their talent gaps, then an HR consultancy can be a lucrative and wide-scope endeavours for you. Let us shed some light on the scope of HR consultancy in Dubai, how it can be obtained, and what the legal requirements are in the Emirates.

HR consultancy sector overview in Dubai 

HR consultancies are gaining huge attention worldwide. They help promote healthy work cultures while filling talent gaps with the best-matched candidates, motivating employees, and transforming the overall work environment. They play a vital role in helping entrepreneurs find the best staff based on their requirements.

If we talk about the overall HR consultancy market worldwide, it is expected to reach a whopping $111 billion by 2030, standing at almost $79 billion in 2025. The figures for Dubai are quite impressive as well. It is estimated to grow by 6.2% from 2025 to 2030. The reason behind this growth is the increasing number of businesses being established here.

The UAE government’s openness to foreign business has led to a rise in the number of companies setting up operations here. As more businesses settle, their demand for HR outsourcing services is also increasing at a fast pace.

Moreover, as the UAE moves towards a more futuristic approach with ongoing infrastructural projects, the demand for HR services to assemble the right team is also increasing. In a nutshell, it can be said that the demand for the right HR services and consulting is on a growing track, creating immense opportunities for those interested in this field. If you want to start any kind of HR consultancy, such as a recruitment agency in Dubai or a training and development firm, this is the right time for you.

HR consultancy license in UAE: 

An HR consultancy license in Dubai permits your company to offer specialized HR services in Dubai legally, such as recruitment, training, HR policy making, and much more to your clients. These clients are usually other businesses and companies. Through your HR consultancy, you would be delivering HR related services. Thus, the HR consultancy license falls in the category of professional license in Dubai.

To obtain an HR license in Dubai mainland, you can reach out to the Department of Economic Development (DED). In free zones, you may need to contact the respective free zone authority to obtain your HR consultancy license.

The employment sector in Dubai is essentially regulated by Ministry of Human Resources and Emiratisation (MOHRE). MOHRE sets out the rules related to recruitment, labour standards, employment contracts, and more in Dubai.

Types of HR consultancy services in Dubai 

There are many activities covered under the HR consultancy license in UAE:

• Devising and implementing HR strategies and policies
• Assistance with recruitment and onboarding
• Training and development of employees
• Payroll and benefits administration
• Organizational development and change management
• Performance management and appraisal

These are just a few examples. The actual list can extend beyond this. Essentially, HR consultants assist businesses with all HR-related tasks, helping them better manage their workforce to ensure optimal performance and satisfaction. Businesses in Dubai can focus more on their core operations, while HR consultants handle the well-being and development of their staff.

Process to get the HR license in Dubai 

To obtain an HR consultancy license in Dubai, you can follow the steps outlined below: 

1. Choose your business jurisdiction:

Start by choosing where you want to establish your consultancy. It can be either in the mainland or a free zone. Both jurisdictions have their own rules, regulations, and advantages. You must pick the one that fulfils your needs.

2. Determine your business activities:

Next, you must define the services that you are going to provide under the license. You must only choose the activities approved by the government. You can offer services like recruitment services, payroll administration, HR policy assistance, and much more. 

3. Choose the appropriate business structure:

For your consultancy, you must also decide on the legal structure. You can start a sole proprietorship, an LLC, or a branch office of a foreign company. There may be other types of UAE business structures available. The structure will impact your business’s operational flexibility, liability, and ownership patterns. Consider these factors when choosing one. 

4. Register a trade name:

Next, you must choose a suitable trade name for your consultancy. The name must be lawful and, at the same time, should also be attractive and easy to remember. Remember, if you do not follow the naming conventions when selecting a name, your business name will be rejected. 

5. Get the initial approval: 

You must secure initial approval from the DED or the freezone authority. Then you can proceed with the next steps. Also, you may need to secure approval from MOHRE as well. 

6. Find office space:

For your HR consultancy, you will need to have an office space. You can choose to rent out the office space. In free zones, you may also get shared workplace options. The size and nature of the workspace depend on your business’s requirements. 

7. Submit the license application:

Finally, you must apply for the HR consultancy license in Dubai. To do so, you must approach the relevant authority along with the required documents. In the case of a mainland business setup, the DED will issue the license. For freezone business setup, you must reach out to the respective free zone authority. You can also make the license application through the e-channels of the government as available. There will be an application form that you must fill out carefully. Along with the form, you must attach the necessary paperwork and pay the fees. 

8. License approval and issuance:

After you submit your license application to the authority, they will review it and check if you fulfil all the legal requirements. If your application is approved, your license will be successfully granted to you, after which you can legally run your business in Dubai. 

9. Visa processing:

If you are a foreign entrepreneur looking to establish an HR consultancy in Dubai, you must also secure a proper business visa, which will allow you to stay and operate within the boundaries of the UAE. Additionally, if you hire foreign staff, you will also need employment visas for them. After securing your business visa, you can also apply for visas for your family. 

10. Corporate bank account:

For the financial matters of your business and all financial transactions, you must have a business bank account in Dubai. Remember, personal accounts cannot be used for business purposes.

HR consultancy license in Dubai requirements 

Before we look into the process of obtaining the HR consultancy license, let us take a look at the paperwork. These are the general documents you would need for an HR consultancy license in Dubai:

• Application form
• Visa and passport copies of the shareholders/owners
• Passport-size photographs
• Educational certificates, as needed
• Experience letter, if needed
• Trade name approval certificate
• Lease agreement for office space
• Initial approval certificate
• Detailed business plan
• Any additional documents as may be requested by authorities

Please remember that the documentation must be valid, accurate, and complete. We recommend contacting our experts at Dubiz Business Setup, who can manage all the documentation on your behalf and ensure that the paperwork is in accordance with UAE laws.

Benefits of getting HR consultancy license in Dubai 

Here is why you should consider getting an HR consultancy license in Dubai: 

 1. Growing Demand:

As more businesses and professionals are setting up in Dubai, the demand for top-quality HR consultancy services continues to increase.

2. Simplified Procedures:

The process of setting up a business in Dubai has been streamlined and simplified by the government. You can obtain your license with ease and start your consultancy.

3. Low Capital Requirement:

Typically, you can start an HR consultancy with minimal capital. Additionally, freezones in Dubai allow for some cost-effective business setup solutions as well.

4. Diverse Clients:

In Dubai, you get to work with diverse clients from different backgrounds. Businesses of all sizes and types thrive in Dubai, offering you opportunities to work with them.

5. Tax Advantages:

Dubai’s tax environment is very friendly. You can benefit from 0% personal income tax along with significant savings on corporate tax as well.

6. Global Reach:

The strategic location of Dubai makes it a perfect fit for reaching out to global markets. Your business can connect with international clients and expand its reach.

7. Ownership Benefits:

You can start and enjoy 100% ownership of your consultancy business in Dubai.

Cost of starting HR consultancy in Dubai 

The cost of HR consultancy license in Dubai mainland starts from AED 12,000* (without visa). In Dubai’s freezone IFZA, you can get the license for AED 12,900* (without visa). However, the total business cost may vary depending on factors such as the nature and scope of your business, the number of visas required, office space needs, the selected jurisdiction, and more.

Want to know more about the Hr consultancy license in Dubai cost? Let our experts guide you through the process!

Begin your HR consultancy journey! 

Starting an HR consultancy in Dubai is an excellent choice for entrepreneurs. The process involves selecting the right business structure and trade name, obtaining the necessary licenses and visas, and more. While the process may seem daunting, it can be successfully accomplished with the help of experts who know the industry inside out.

In the UAE, Dubiz Business Setup has been providing business setup services in Dubai for a long time and has helped numerous clients achieve their business dreams. From registering the trade name to securing the HR consultancy license, visas, and opening a business bank account, we handle every aspect of starting a new business in Dubai. Contact our experts to start your business setup in Dubai quickly, hassle-free, and without spending a fortune.

📞 Call: +971 56 369 5485

💬 WhatsApp: +971563695485

📧 Email: info@dubiz.co

FAQs 

1. What is the eligibility for HR consultancy license in UAE? 

Typically, there is no requirement for the UAE nationals. Also, expats can obtain 100% ownership of their consultancy. Generally, you would need proper educational qualification like bachelor’s degree in HR, business administration, or economics. Along with that you may have to prove your work experience, which is typically 3 years required. 

2. What services can I provide as HR consultancy in UAE?

There is a wide range of activities that can be provided under a HR consultancy license in Dubai, UAE, such as payroll administration, HR policy assistance, recruitment services, training of employees, etc.

3. Why Dubai for HR consultancy services?

Starting an HR consultancy in Dubai can be hugely beneficial given the city’s booming HR sector, rising demands for such services, and facilitative business setup environment.

4. Is HR consulting profitable?

HR consulting is a highly lucrative business. As more and more businesses rely on outsourcing the HR related tasks to experts, more business opportunities are emerging in this sector.

5. Do I need a license for starting consultancy in Dubai?

Yes, you would need a professional license for starting any type of consultancy in Dubai. You can check DED’s website for more details.